El Paso City Council to consider new West Side hospital

A new full-service hospital could be coming to the West Side if the City Council on Tuesday approves an incentive package for Tenet Hospitals Limited, which owns and manages the Sierra Providence Health Network.

The council will consider awarding the hospital chain up to $12 million in tax breaks, grants and other incentives through what's called a Chapter 380 Economic Development Program Agreement. Officials with the city's Economic and International Development Department didn't immediately return calls for comment.

Under the proposed agreement, Tenet would build a 108-bed full-service hospital at Transmountain Road and Resler Drive on the West Side. Tenet operates Sierra Medical Center, Providence Memorial Hospital, Sierra Providence East Medical Center and Children's Hospital at Providence.

Tenet would be required to invest at least $120 million to build the hospital and would have to employ at least 300 medial professions for the 15-year term of the agreement, according to city documents.

It would also serve as a teaching hospital with medical, nursing and residency education programs under a partnership with the Texas Tech University Health Science Center at El Paso.

"The Sierra Providence Health Network and Texas Tech University Health Sciences Center – El Paso have enjoyed a long and productive partnership on a number of healthcare initiatives to improve the health of the El Paso region," hospital officials said in an emailed statement.

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Officials declined further comment until after the council considers the incentive package. They didn't indicate when construction might start or when the hospital could open if the agreement is approved.

City Rep. Cortney Niland said the Chapter 380 agreements are an economic development tool to offer incentives to local businesses to expand or new businesses to move to El Paso. This one in particular, she said, has multiple and far-reaching benefits.

"The most important component in this agreement is that it's going to be a teaching hospital," Niland said. "It will not only support our medical school but serve a need we have on the growing West Side. It's creating new jobs in the medical field that are here to stay and grow."

The proposal calls for Tenet to spend at least $120 million to build the facility, including $105 million for the hospital itself. The remaining $15 million would be for a medical office building that's to be built and operated by a third-party selected by Tenet but would still be considered a qualified investment under the Chapter 380 agreement.

The hospital chain would be required to create and maintain at least 300 full-time employees during the 15-year term. Additionally, it would be required to retain at least 80 percent of its 2,991 existing full-time positions at its three other hospitals.